This Service Level Agreement in BPO is designed for use in the Malaysian business environment where organizations seek to outsource specific business processes to specialized service providers. The document is essential when establishing a formal outsourcing relationship that requires detailed performance metrics, service standards, and operational procedures. It incorporates key requirements under Malaysian law, including compliance with the Employment Act 1955, Personal Data Protection Act 2010, and relevant industry regulations. The agreement is particularly crucial for organizations looking to maintain control over outsourced processes while ensuring clear accountability, performance measurement, and value delivery. It includes comprehensive provisions for service delivery, quality management, staff requirements, data protection, and business continuity, adapted to the Malaysian legal and business context.
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1. Parties: Identification and details of the service provider and client organization
2. Background: Context of the agreement, including brief description of the parties' businesses and purpose of the arrangement
3. Definitions: Detailed definitions of technical terms, service-related terminology, and other key concepts used throughout the agreement
4. Scope of Services: Detailed description of BPO services to be provided, including core functions and responsibilities
5. Service Levels: Specific, measurable performance standards and metrics that the service provider must meet
6. Performance Monitoring: Methods and procedures for measuring and reporting service level performance
7. Operational Requirements: Day-to-day operational procedures, reporting structures, and communication protocols
8. Personnel and Resources: Requirements for staffing, training, and resources to be provided by the service provider
9. Data Protection and Security: Obligations and procedures for handling sensitive data and maintaining security
10. Business Continuity: Disaster recovery and business continuity requirements and procedures
11. Charges and Payment: Fee structure, payment terms, and any performance-related incentives or penalties
12. Term and Termination: Duration of the agreement, renewal terms, and termination provisions
13. Liability and Indemnification: Allocation of risks, limitation of liability, and indemnification obligations
14. General Provisions: Standard legal provisions including governing law, dispute resolution, and force majeure
1. Transition Services: Procedures for transitioning services from current provider or back to client - include when there's an incumbent provider or specific transition requirements
2. Intellectual Property Rights: Detailed IP provisions - include when software development or creative works are part of the services
3. Change Management: Procedures for implementing changes to services or service levels - include for complex or evolving service requirements
4. Compliance with Specific Regulations: Industry-specific regulatory requirements - include for regulated industries like healthcare or financial services
5. Multi-jurisdiction Services: Provisions for services delivered across multiple countries - include for international operations
6. Third-party Subcontractors: Rules and obligations regarding use of subcontractors - include when subcontracting is anticipated
7. Knowledge Transfer: Requirements for documentation and training - include for complex technical services
8. Innovation and Continuous Improvement: Obligations to propose and implement service improvements - include for long-term strategic partnerships
1. Schedule 1 - Detailed Service Descriptions: Comprehensive description of each service component and delivery requirements
2. Schedule 2 - Service Level Specifications: Detailed metrics, measurement methods, and reporting requirements for each service level
3. Schedule 3 - Pricing and Payment Schedule: Detailed fee structure, calculation methods, and payment terms
4. Schedule 4 - Key Personnel: List of key personnel from both parties, their roles and responsibilities
5. Schedule 5 - Technical Requirements: Infrastructure, system, and technical specifications required for service delivery
6. Schedule 6 - Security Requirements: Detailed security protocols, access controls, and compliance requirements
7. Schedule 7 - Business Continuity Plan: Detailed procedures for disaster recovery and service continuity
8. Schedule 8 - Governance and Reporting: Meeting schedules, reporting formats, and governance procedures
9. Appendix A - Performance Report Templates: Standard templates for various performance and operational reports
10. Appendix B - Escalation Matrix: Contact details and procedures for issue escalation
11. Appendix C - Transition Plan: Detailed plan for service transition and implementation phases
Authors
Relevant legal definitions
Clauses
Relevant Industries
Financial Services
Healthcare
Telecommunications
Technology
Manufacturing
Retail
Insurance
Banking
E-commerce
Logistics
Professional Services
Travel and Hospitality
Relevant Teams
Legal
Operations
Procurement
Compliance
Information Technology
Risk Management
Quality Assurance
Vendor Management
Service Delivery
Information Security
Business Continuity
Performance Management
Contract Administration
Relevant Roles
Chief Operations Officer
Operations Director
Procurement Manager
Legal Counsel
Compliance Officer
Service Delivery Manager
Contract Manager
Business Process Manager
Quality Assurance Manager
Risk Manager
IT Director
Chief Information Security Officer
Vendor Management Officer
Performance Analytics Manager
Operations Excellence Lead
Business Continuity Manager
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